House of Commons Public Bill Committee Proceedings

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Public Bill Committee Proceedings: 12 December 2013
46

Water Bill, continued

(i)
the FR Scheme’s finances,

(ii)
the FR Scheme’s accounts,

(iii)
accountability to Parliament for the economy, efficiency and

effectiveness with which the FR Scheme uses resources in

discharging its functions;

(iv)
accountability to Parliament for propriety and regularity in the

operation of the FR Scheme, and

(v)
examinations and reports under subsection (4)(f),


as are specified in the regulations.

(6)
Regulations under subsection (1) may make provision about the disclosure of

information required for the purposes of the FR Scheme and may, in particular—

(a)
as regards information which is held for council tax purposes by the

Valuation Office of Her Majesty’s Revenue and Customs, make

provision—

(i)
for the supply of such information to the FR Scheme

administrator, to relevant insurers and to such other persons as

may be specified in the regulations;

(ii)
for any such supply to be subject to such conditions as may be

specified in the regulations;

(iii)
making it an offence for a person to fail to comply with any such

condition, subject to any defence specified in the regulations;

(b)
require relevant insurers to supply to the FR Scheme administrator such

information as it may request in relation to insurance policies issued by

them.

(7)
Regulations under subsection (1) may provide for the supply by the FR Scheme

administrator of information held by it in connection with the FR Scheme to—

(a)
the Environment Agency,

(b)
the Scottish Environment Protection Agency,

(c)
the Natural Resources Body for Wales,

(d)
the Department of Agriculture and Rural Development in Northern

Ireland, or

(e)
such other body as may be specified in the regulations.

(8)
Regulations under subsection (1) may provide for the supply by the FR Scheme

administrator of information held by it in connection with the FR Scheme to the

Secretary of State for purposes relating to government accounting.

(9)
Subsections (2) to (8) are not exhaustive of what may be done under subsection

(1).

(10)
In this section, “the FR Scheme’s accounts” means the accounts for a financial

year of the FR Scheme prepared by the FR Scheme administrator in respect of the

FR Scheme.’.

Public Bill Committee Proceedings: 12 December 2013
47

Water Bill, continued

Replacement of the scheme or administrator

Dan Rogerson

Added  NC5

To move the following Clause:—

‘(1)
Where regulations under section (The Flood Reinsurance Scheme) replace the FR

Scheme by revoking a designation and making a new designation, the regulations

may make such provision as the Secretary of State thinks fit in connection with

the replacement of the old FR scheme with the new FR scheme.

(2)
Where regulations under section (Scheme administrator) replace the FR Scheme

administrator by revoking a designation and making a new designation, the

regulations may make provision for the transfer of property, rights and liabilities

relating to the FR Scheme from the old administrator to the new administrator.’.

Disclosure of information: preparatory purposes

Dan Rogerson

Added  NC6

To move the following Clause:—

‘(1)
The Secretary of State may by regulations make provision about the disclosure of

HMRC council tax information in connection with such scheme as may be

established and designated in accordance with section (The Flood Reinsurance

Scheme).

(2)
In this section “HMRC council tax information” means information which is held

for council tax purposes by the Valuation Office of Her Majesty’s Revenue and

Customs.

(3)
Regulations under subsection (1) may, in particular, make provision—

(a)
for the supply of HMRC council tax information to such persons, or

descriptions of persons, as may be specified in the regulations;

(b)
for any such supply to be subject to such conditions as may be specified

in the regulations,

(c)
making it an offence for a person to fail to comply with any such

condition, subject to any defence specified in the regulations;

(d)
about the destruction, in such circumstances as may be specified in the

regulations, of records of any HMRC council tax information obtained

by virtue of the regulations.’.

Public Bill Committee Proceedings: 12 December 2013
48

Water Bill, continued

Flood insurance obligations

Dan Rogerson

Added  NC7

To move the following Clause:—

‘(1)
The Secretary of State may by regulations require a relevant insurer to issue in a

prescribed period insurance policies that provide cover against a prescribed

description of risk for a prescribed number of registered premises.

(2)
The regulations may prescribe different numbers of registered premises for
5
different descriptions of risk.

(3)
The descriptions of risks that may be prescribed are those relating to the effects

of flooding.

(4)
The regulations may provide for a prescribed number relating to a relevant insurer

to be determined by reference to factors that include in particular—
10
(a)
a target number (see section (Flood insurance obligations: target

number));

(b)
the relevant insurer’s share of insurance business of a prescribed

description.

(5)
The regulations may—
15
(a)
make provision about determining the size of a relevant insurer’s share

of insurance business of a prescribed description;

(b)
provide for a relevant insurer to be exempt from the obligation described

in subsection (1) in prescribed circumstances, whether wholly or so far as

regards a particular description of risk, including circumstances relating
20
to the amount of insurance business done by the relevant insurer;

(c)
make provision about the circumstances in which a relevant insurer

ceases to be subject to the obligation described in subsection (1), whether

wholly or so far as regards a particular description of risk;

(d)
make provision about the cases in which issuing an insurance policy is
25
not to count towards discharging an obligation imposed on a relevant

insurer by the regulations, including cases in which an insurance policy

is not to count because of the content of its terms;

(e)
make provision for allowing an insurance policy issued by another

insurer to count towards the discharge of an obligation to issue a number
30
of insurance policies imposed on a relevant insurer by the regulations;

(f)
make provision about determining the number of registered premises for

which a relevant insurer has issued insurance policies, including

provision for varying, by reference to the risk band applicable to the

particular registered premises, the extent to which insuring those
35
premises counts in determining that number.

(6)
Provision under subsection (5)(a) may require an insurer, in determining the

insurer’s share of insurance business of a prescribed description, to use

information about that insurance business held by—

(a)
the Secretary of State,
40
(b)
a person acting on behalf of the Secretary of State, or

(c)
the FCA.

(7)
Subsection (5)(e) is not to be taken as requiring a change in the person who is the

insurer in relation to an insurance policy.

(8)
Regulations under this section may include provision in respect of cases where an
45
insurer has not provided such information as is required by regulations under

section (Flood insurance obligations: information) including—

(a)
provision for determining whether the insurer is a relevant insurer,

Public Bill Committee Proceedings: 12 December 2013
49

Water Bill, continued

(b)
provision for determining whether an exemption applies, and

(c)
provision for determining what share of insurance business of a
50
prescribed description the insurer is to be treated as having.

(9)
Before making regulations under this section, the Secretary of State must consult

such persons as the Secretary of State considers appropriate.

(10)
In this section “prescribed” means specified in or determined in accordance with

regulations under this section.’.

As Amendments to Dan Rogerson’s proposed New Clause (Flood insurance

obligations) (NC7):—

Thomas Docherty

Negatived on division  (a)

Line  35,  at end insert—

‘(g)
make provision about the circumstances in which a relevant insurer may

require mitigation activity to be a condition of cover under an insurance

policy.’.

Thomas Docherty

Negatived on division  (b)

Line  35,  at end insert—

‘(g)
make provision about the circumstances in which a relevant insurer may

require an insured to retain certain elements of the risk under the Flood

Reinsurance scheme.’.

Thomas Docherty

Negatived on division  (c)

Line  35,  at end insert—

‘(g)
make provision about the circumstances in which a relevant insurer must

build awareness of flood risk amongst those living in high risk

households.’.

Flood insurance obligations: target number

Dan Rogerson

Added  NC8

To move the following Clause:—

‘(1)
The Secretary of State may, from time to time, by regulations prescribe a number

to be a target number for the purposes of regulations under section (Flood

insurance obligations).

(2)
A target number is the number of registered premises to be covered against a
5
prescribed description of risk by insurance policies issued in a prescribed period

by those relevant insurers upon whom obligations are imposed by regulations

under section (Flood insurance obligations).

(3)
The regulations may prescribe different target numbers for different descriptions

of risk.
10
(4)
The regulations may in particular provide for a target number to be expressed as

a percentage of the number of registered premises.

Public Bill Committee Proceedings: 12 December 2013
50

Water Bill, continued

(5)
The regulations may, at any one time, prescribe target numbers for two or more

consecutive prescribed periods.

(6)
In this section “prescribed” means specified in or determined in accordance with
15
regulations under this section.’.

As an Amendment to Dan Rogerson’s proposed New Clause (Flood insurance

obligations: target number) (NC8):—

Thomas Docherty

Negatived on division  (a)

Line  15,  at end add—

‘(7)
In prescribing a target number the Secretary of State shall refer to the advice of

the Committee on Climate Change given under section [The Flood Reinsurance

Scheme](8).’.

Flood insurance obligations: information

Dan Rogerson

Added  NC9

To move the following Clause:—

‘(1)
The Secretary of State may by regulations make provision about—

(a)
the provision of information, and

(b)
the production of documents,


by insurers for the purposes of regulations under section (Flood insurance

obligations).

(2)
The regulations may in particular require an insurer to provide information of a

prescribed description or produce documents of a prescribed description for the

purpose of showing, in relation to a prescribed period—

(a)
whether or not an insurer is a relevant insurer;

(b)
whether or not an exemption applies (see section (Flood insurance

obligations)(5)(b)).

(3)
The regulations may in particular require an insurer to provide information or

produce documents about—

(a)
the insurance policies issued by it in a prescribed period that provide

cover against prescribed descriptions of risk;

(b)
the value of the insurance policies so issued;

(c)
insurance policies so issued that do not remain in force to the end of the

period of cover;

(d)
the value of such insurance policies.

(4)
The regulations may provide for information to be provided or documents to be

produced to the Secretary of State or a person acting on behalf of the Secretary of

State.

(5)
The regulations may make provision—

(a)
about the time within which information must be provided or documents

produced;

(b)
about the form in which information is to be provided;

Public Bill Committee Proceedings: 12 December 2013
51

Water Bill, continued

(c)
about the place where documents are to be produced;

(d)
requiring information to be verified in a prescribed manner;

(e)
requiring documents to be authenticated in a prescribed manner.

(6)
The regulations may make provision about—

(a)
the persons to whom, and the purposes for which, information supplied

by an insurer may be disclosed;

(b)
the publication of information by the Secretary of State about the amount

of insurance business of a prescribed description done by insurers, taken

together.

(7)
In this section “prescribed” means specified in or determined in accordance with

regulations under this section.’.

Flood insurance obligations: further provision

Dan Rogerson

Added  NC10

To move the following Clause:—

‘(1)
The Secretary of State may by regulations make provision for and in connection

with enforcing compliance with obligations imposed by regulations under section

(Flood insurance obligations: information).

(2)
The regulations may in particular include—

(a)
provision about the sanctions, including civil penalties, that may be

imposed by the Secretary of State or a person acting on behalf of the

Secretary of State for non-compliance with the obligations;

(b)
provision about the procedure to be followed when imposing a sanction;

(c)
provision about the recovery of costs incurred in connection with

imposing a sanction up to the time of its imposition;

(d)
provision enabling an appeal to the First-tier Tribunal against the

imposition of a sanction or a requirement to pay costs.

(3)
Provision under subsection (2)(a) may in particular include—

(a)
provision for civil penalties of a fixed amount;

(b)
provision for further amounts to be payable by way of civil penalty where

an insurer continues to fail to comply with the obligation in question;

(c)
provision about how a civil penalty or an amount of costs may be

recovered.

(4)
Provision under subsection (2)(d) may include provision as to the grounds on

which an appeal may be made.’.

Register of premises subject to greater flood risk

Dan Rogerson

Added  NC11

To move the following Clause:—

Public Bill Committee Proceedings: 12 December 2013
52

Water Bill, continued

‘(1)
The Secretary of State may by regulations provide for the creation and

maintenance of a register of household premises in the United Kingdom that are

subject to greater flood risk for the purposes of regulations under section (Flood

insurance obligations).

(2)
The regulations may provide for the levels of flood risk to which premises are

subject to be divided into two or more bands (“risk bands”), and may prescribe

the upper and lower limits of each band.

(3)
The regulations may provide for the register to specify the level of flood risk to

which particular household premises are subject by specifying the risk band

applicable to the premises.

(4)
The regulations may provide for premises of a description specified in the

regulations to be excluded from the register, and the premises excluded may

include in particular premises where construction is completed on or after a date

specified in the regulations.

(5)
The regulations may—

(a)
specify the information to be contained in the register;

(b)
make provision about access to the information contained in the register;

(c)
provide for the publication of the register in whole or in part;

(d)
provide for the disclosure of information contained in the register;

(e)
provide for notification if premises are entered in, or omitted from, the

register.

(6)
Regulations made under subsection (5)(d) may provide for—

(a)
the persons to whom information or any description of information

contained in the register may be disclosed,

(b)
the imposition of conditions on persons to whom information contained

in the register is disclosed, including conditions limiting further

disclosure;

(c)
penalties for non-compliance with conditions imposed under paragraph

(b).

(7)
The regulations may require applications for premises to be entered in the register

to be made by or on behalf of a person who has the qualifying interest in the

premises.

(8)
The regulations may provide for premises to be omitted from the register at the

request of a person who has the qualifying interest in the premises.

(9)
Before making regulations under this section the Secretary of State must

consult—

(a)
the Welsh Ministers;

(b)
the Scottish Ministers;

(c)
the Department of Agriculture and Rural Development in Northern

Ireland.’.

The register: further provision

Dan Rogerson

Added  NC12

To move the following Clause:—

‘(1)
Regulations under section (Register of premises subject to greater flood risk) may

provide for a relevant body to carry out functions in connection with—



© Parliamentary copyright	Revised 13 December 2013